Silicon Motion Technology (NASDAQ:SIMO) Trading Down 5.3% - Here's Why

Key Points

• Silicon Motion shares fell 5.3% to about $233.67 in Tuesday trading, with volume down 84% versus the average session.
• Analysts remain bullish, with a consensus “Buy” rating and an average price target of $341.43; several firms recently raised their targets as high as $400.
• The company reported strong quarterly results, including $2.43 in EPS versus a $2.13 estimate and $451 million in revenue, up 127% year over year.

Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report)'s share price was down 5.3% during trading on Tuesday . The stock traded as low as $230.02 and last traded at $233.6740. 144,301 shares traded hands during trading, a decline of 84% from the average session volume of 897,953 shares. The stock had previously closed at $246.84.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the stock. Weiss Ratings raised shares of Silicon Motion Technology from a "hold (c)" rating to a "buy (b-)" rating in a report on Monday, August 17th. Craig Hallum restated a "buy" rating and issued a $325.00 price objective on shares of Silicon Motion Technology in a research report on Friday, July 31st. Susquehanna upped their target price on Silicon Motion Technology from $275.00 to $350.00 and gave the stock a "positive" rating in a research note on Friday, July 31st. Wedbush increased their target price on Silicon Motion Technology from $230.00 to $400.00 and gave the company an "outperform" rating in a research report on Monday, June 22nd. Finally, Roth Capital reissued a "buy" rating and issued a $350.00 price target on shares of Silicon Motion Technology in a research note on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating and nine have given a Buy rating to the company. According to MarketBeat, the stock has a consensus rating of "Buy" and an average price target of $341.43.

Silicon Motion Technology Stock Performance

The firm's 50-day moving average price is $274.05 and its two-hundred day moving average price is $216.78. The stock has a market cap of $7.98 billion, a price-to-earnings ratio of 27.60, a PEG ratio of 0.43 and a beta of 1.71.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last posted its earnings results on Wednesday, July 29th. The semiconductor producer reported $2.43 earnings per share for the quarter, beating the consensus estimate of $2.13 by $0.30. Silicon Motion Technology had a net margin of 22.06% and a return on equity of 32.04%. The company had revenue of $451.00 million for the quarter, compared to analyst estimates of $403.41 million. During the same period in the previous year, the business posted $0.69 EPS. Silicon Motion Technology's revenue was up 127.0% on a year-over-year basis. As a group, sell-side analysts expect that Silicon Motion Technology Corporation will post 10.78 earnings per share for the current fiscal year.

Insider Buying and Selling at Silicon Motion Technology

In related news, Director Han-Ping Shieh sold 1,000 shares of Silicon Motion Technology stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $328.00, for a total value of $328,000.00. Following the completion of the transaction, the director owned 7,500 shares in the company, valued at approximately $2,460,000. The trade was a 11.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Kuan-Ming Lin sold 2,000 shares of the company's stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $305.00, for a total transaction of $610,000.00. Following the sale, the director directly owned 8,500 shares in the company, valued at approximately $2,592,500. The trade was a 19.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 5.34% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Silicon Motion Technology

Several institutional investors have recently modified their holdings of SIMO. Cooper Investors PTY Ltd. acquired a new stake in Silicon Motion Technology in the second quarter valued at $34,000. Strategic Investment Solutions Inc. IL acquired a new stake in Silicon Motion Technology during the 2nd quarter worth $88,000. Brown Brothers Harriman & Co. purchased a new stake in Silicon Motion Technology in the third quarter valued at $26,000. Arax Advisory Partners boosted its stake in Silicon Motion Technology by 220.9% in the fourth quarter. Arax Advisory Partners now owns 446 shares of the semiconductor producer's stock valued at $41,000 after acquiring an additional 307 shares in the last quarter. Finally, EverSource Wealth Advisors LLC boosted its stake in Silicon Motion Technology by 169.4% in the second quarter. EverSource Wealth Advisors LLC now owns 582 shares of the semiconductor producer's stock valued at $44,000 after acquiring an additional 366 shares in the last quarter. Institutional investors and hedge funds own 78.02% of the company's stock.

About Silicon Motion Technology

Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices. The company offers controllers for computing-grade solid state drives (SSDs), which are used in PCs and other client devices; enterprise-grade SSDs used in data centers; eMMC and UFS mobile embedded storage for use in smartphones and IoT devices; flash memory cards and flash drives for use in expandable storage; and specialized SSDs that are used in industrial, commercial, and automotive applications.

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